Medtronic stock price target raised to $90 from $87 at Stifel on growth catalysts

Investing.com - Stifel has raised its price target on Medtronic , Inc. (NYSE:MDT), a $115.3 billion healthcare equipment leader, to $90.00 from $87.00 while maintaining a Hold rating on the medical device maker’s stock. According to InvestingPro data, the stock is currently trading near its 52-week high of $96.25.

The price target increase follows Medtronic’s fiscal first quarter 2026 results, which exceeded both top and bottom-line consensus estimates and prompted the company to raise its earnings guidance. The company maintains a strong financial position with a 3.06% dividend yield and has raised its dividend for 11 consecutive years. Despite the positive results, Medtronic shares fell approximately 3.5% after the earnings announcement.

Stifel attributes the negative stock reaction to investors possibly expecting a more substantial beat-and-raise scenario. The firm notes that Medtronic highlighted numerous potential growth-accelerating catalysts expected to contribute meaningfully to performance in the second half of fiscal 2026.

These growth drivers include Affera PFA technology, the HUGO robotic surgery system with U.S. approval expected in the second half of fiscal 2026, and renal denervation Medicare reimbursement with finalization anticipated in October 2025.

Stifel observes that following 4.8% organic sales growth in the first quarter and with the company maintaining its approximately 5% organic revenue growth guidance for fiscal 2026, Medtronic’s implied trading multiple of about 16 times fiscal 2026 earnings appears similar or at a slight premium compared to other mid-single-digit growth large-cap companies in Stifel’s coverage universe.

In other recent news, Medtronic reported its first-quarter fiscal 2026 earnings, surpassing Wall Street expectations with an adjusted earnings per share of $1.26, compared to the forecasted $1.23. The company also exceeded revenue projections, achieving €8.6 billion against an anticipated €8.38 billion. The adjusted revenue was reported at $8.54 billion, with underlying organic growth of 4.8%. Regionally, organic sales growth in the US was 3.5%, while international growth reached 6.1%. Following these results, TD Cowen reiterated its Buy rating on Medtronic, maintaining a price target of $106.00. Despite the positive earnings report, Medtronic’s stock experienced a decline in premarket trading.

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